Market Matters Blog

DTN Weekly Average DDG Price Steady

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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DTN's weekly spot price for domestic distillers dried grains during the week ended April 15 was steady on average versus one week ago. (DTN file photo)

OMAHA (DTN) -- The average price for domestic distillers dried grains (DDG) from the 39 locations DTN contacted with spot offers for the week ended April 15 was $212 per ton, unchanged from one week ago.

DDG prices were mixed this week as soymeal prices backed off. Traders note DDG prices for late summer and early fall have been starting to strengthen. The expanding drought covering much of the western U.S. is affecting pasture and range conditions and forage growth, causing feeders to look for replacement feed. The USDA weekly crop progress for the week ended April 11 noted that hay and roughage supplies in North Dakota were rated 16% very short, 32% short; Utah was rated 10% very short, 30% short; Wyoming was rated 21% very short, 26% short; and New Mexico was rated 40% very short, 38% short.

Wednesday's Energy Information Administration report showed overall ethanol plant production dropped 34,000 barrels per day (bpd) or 3.5% to 941,000 bpd. Four-week average output at 955,000 bpd was 179,000 bpd higher than the corresponding four weeks in 2020.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended April 15 was 100.61% versus the five-year average of 109%. The value of DDG relative to soybean meal was 52.75% versus the three-year average of 42%. The cost per unit of protein for DDG was $7.85, compared to the cost per unit of protein for soybean meal at $8.46.

In their weekly DDGS export price update, the U.S. Grains Council said, "On the export front, markets are stronger with a decrease in freight values attracting additional buying interest. Barge CIF NOLA offers are up $2 to $3 metric ton (mt) for Q2 positions while FOB Gulf offers are up $7 to $8/mt for May-July. U.S. rail rates are mostly steady while 40-foot containers to Southeast Asia are down $5 to $6/mt, averaging $335/mt this week for May/June."

NOTE: All prices listed below can change at any time and are subject to confirmation from seller.

ALL PRICES SUBJECT TO CONFIRMATION CURRENT PREVIOUS CHANGE
COMPANY STATE 4/15/2021 4/8/2021
Bartlett and Company, Kansas City, MO (816 714 3413)
Missouri Dry $220 $225 -$5
Wet $110 $113 -$3
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Dry $215 $210 $5
Wet $108 $105 $3
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $212 $208 $4
Indiana Dry $208 $208 $0
Iowa Dry $212 $208 $4
Michigan Dry $210 $210 $0
Minnesota Dry $210 $210 $0
North Dakota Dry $210 $210 $0
New York Dry $225 $225 $0
South Dakota Dry $210 $208 $2
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $215 $215 $0
Iowa Dry $210 $205 $5
Michigan Dry $210 $210 $0
Minnesota Dry $205 $205 $0
Missouri Dry $234 $230 $4
Ohio Dry $210 $210 $0
South Dakota Dry $208 $205 $3
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $230 $230 $0
Wet $85 $85 $0
Illinois Dry $215 $212 $3
Nebraska Dry $230 $230 $0
Wet $85 $85 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $215 $215 $0
Indiana Dry $210 $215 -$5
Iowa Dry $200 $205 -$5
Michigan Dry $210 $210 $0
Minnesota Dry $205 $210 -$5
Nebraska Dry $205 $210 -$5
New York Dry $235 $240 -$5
North Dakota Dry $200 $210 -$10
Ohio Dry $205 $210 -$5
South Dakota Dry $200 $200 $0
Wisconsin Dry $205 $205 $0
Valero Energy Corp, San Antonio, Texas
Indiana Dry $210 $210 $0
Iowa Dry $0 $0 $0
Minnesota Dry $0 $0 $0
Nebraska Dry $0 $0 $0
Ohio Dry $220 $220 $0
South Dakota Dry $0 $0 $0
California Dry $0 $0 $0
Western Milling, Goshen, California (559-302-1074)
California Dry $286 $286 $0
*Prices listed per ton.
Weekly Average $212 $212 $0
The weekly average prices above reflect only those companies DTN
collects spot prices from. States include: Missouri, Iowa, Nebraska,
Kansas, Illinois, Minnesota, North Dakota, South Dakota, Michigan,
Wisconsin and Indiana. Prices for Pennsylvania, New York and
California are not included in the averages.

VALUE OF DDG VS. CORN & SOYBEAN MEAL
Settlement Price: Quote Date Bushel Short Ton
Corn 4/15/2021 $5.9000 $210.71
Soybean Meal 4/15/2021 $401.90
DDG Weekly Average Spot Price $212.00
DDG Value Relative to: 4/15 4/8
Corn 100.61% 102.39%
Soybean Meal 52.75% 52.11%
Cost Per Unit of Protein:
DDG $7.85 $7.85
Soybean Meal $8.46 $8.56
Notes:
Corn and soybean prices take from DTN Market Quotes. DDG price
represents the average spot price from Midwest companies
collected on Thursday afternoons. Soybean meal cost per unit
of protein is cost per ton divided by 47.5. DDG cost per unit
of protein is cost per ton divided by 27.

Mary Kennedy can be reached at mary.kennedy@dtn.com

Follow her on Twitter @MaryCKenn

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